Category: Business

Source: Radio New Zealand

• Household living costs about $55 a week higher this year – ASB research report
• About 50 pct higher than might have been because of Middle East conflict
• Higher fuel costs add $16.50 a week
• Flow through to other goods and services, dampening demand, growth, jobs
• Assumes conflict ends mid-year, easier costs by year end

Households face a $55 a week rise in living costs this year partly because of the Middle East conflict, according to ASB economists.

In a research report released Thursday they said the cost of living will be 50 percent higher than it might normally have been, with a direct hit from the rise in fuel costs and indirect increases in the price of other goods and services.

“Overall, the recovery in household consumption we had pencilled in for 2026 now looks to be a 2027 story,” ASB chief economist Nick Tuffley said.

He said there was much uncertainty because of the conflict.

“Our central assumption is that the conflict lasts for three months, and that the price impacts last another three months.”

The report said it expected the increase in fuel costs to add $16.50 a week directly to living costs, with rural communities feeling the pinch harder because of a greater reliance on diesel-fuelled private transport.

It expected not just a drop in spending but also a change in spending habits.

“Typically, during times of financial pressure, households prioritise essential purchases such as groceries, food and beverages, and pharmaceuticals, while reducing spending in other areas.

“This shift in spending patterns is expected to partially offset the overall increase in household expenses.”

The report’s base assumption was that the conflict would last three months to about mid-year, with the biggest impact on spending would be over the next six months before the start of a rebound in the final three months of the year.

Bigger hit to broader economy

The weaker domestic demand was also expected to affect other parts of the economy.

“Given that the conflict in the Middle East is also likely to impact economic growth, we see downside risks to household consumption via both the wealth and labour market channels as well,” Tuffley said.

That would also mean a brake on house prices and job creation.

The temporary increase in the base rate of the in-work tax credit for working about 143,000 families was expected to have only limited impact.

The report said the lift in living costs and its effect on consumer spending was a double edged sword for the Reserve Bank.

“The resultant weakness in domestic demand should help keep a lid on inflation, but it also makes the [Reserve Bank’s] job harder, as weaker growth and rising prices are pulling in opposite directions.”

It was still holding to a forecast of a 25 basis point rise in the official cash rate in December to 2.5 percent, but was watching the risk that the RBNZ may have to raise sooner and more aggressively because of medium-term inflation pressures.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

The owner of a sailing club in Taupō says eased alcohol restrictions on public holidays will make the rules more straightforward.

Legislation to ease alcohol restrictions over Easter, Anzac Day, and Christmas passed its third and final reading at Parliament on Wednesday.

The bill amends the Sale and Supply of Alcohol Act to allow premises that are already open on Good Friday, Easter Sunday, Anzac Day morning, and Christmas Day to sell alcohol under normal licence conditions.

Bottle shops will still have to stay closed, and supermarket alcohol restrictions remain. The bill passed 66 votes to 56.

Two Mile Bay Sailing Club owner Torben Landl told Morning Report it was a fantastic result for the hospitality sector.

“It’s been pretty tough times out there and this is exactly what we need.”

He said Easter was a big weekend for hospitality and it would be great to be able to trade normally and capitalise on the long weekend.

He said the rules could be “problematic”.

“So a customer will turn up on Good Friday, they’ll order a couple of drinks, alcoholic drinks, and then our team will have to explain the liquor licence laws and […]usually that doesn’t go down very well with the majority of customers.”

He said workers were copping the brunt of it and the law change would make the rules less complicated.

Labour MP Kieran McAnulty, who put forward the bill, said it would also clear up the guesswork for hospitality staff in deciding what was a “substantial” meal to serve before someone could purchase alcohol, by removing the requirement entirely.

“What is even more ridiculous is that actually they’re not required to eat the meal. They’re only required to purchase it, and it can sit there while they drink, and it could also be argued that they can go and buy another substantial meal in order to keep drinking. That doesn’t make sense. This bill clears that up,” he said.

The ACT party voted as a bloc in support, while all New Zealand First and Green MPs opposed the bill.

MP Kahurangi Carter said the Greens had a long history of fighting for alcohol harm reduction laws, and believed the entire Sale and Supply of Alcohol Act needed to be overhauled.

New Zealand First MP David Wilson said he valued using those holidays for remembrance and reflection.

McAnulty told RNZ before the third reading, he was hopeful it could get Royal Assent on Thursday, so it could be law before the long weekend.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Just under 5700 people have had their KiwiSaver contribution rates reduced, meaning they will not be paying the new default rate of 3.5 percent.

For pay processed on or after April 1, the default contribution rate has lifted from 3 percent to 3.5 percent, as part of a staged process to lift both to 4 percent in 2028.

Contribution rates increased unless people were already paying a higher level, or they had applied to Inland Revenue for a temporary reduction in their contribution rate, which their employer could then match.

Inland Revenue said, as of Tuesday, 5696 people had their contribution rate reduced, and this number could still grow.

Dean Anderson, founder of Kōura, said it was less than a quarter of 1 percent of the active KiwiSaver members.

“I’m not sure how many Kiwis were actually fully aware of the changes that were coming. I think the real awareness will kick in when the next payslip arrives and people notice a slightly smaller deposit in their bank accounts.

“This may catch out those on total remuneration contracts or anyone managing a strict budget based on their usual cash in hand. I encourage everyone to pay close attention to their payslips over the next month to ensure their employer has applied these changes correctly.”

Rupert Carlyon, founder of Kōura, said he was not surprised at the number.

“I don’t think people realise what is happening or how they can get out of the change.

“We have sent out four different emails saying that this is coming – but haven’t had any feedback at all or questions on it which is really surprising.

“I wonder whether employers have been communicating with their employees, it is at this level that more probably needs to be done rather than through the KiwiSaver providers.”

The government earlier estimated a working parent, with a starting income of $60,000 at 25, two children, who took one year of parental leave and who withdrew all their savings at 30 to buy a home, would end up with just over $500,000 in their account at 65 with the new contribution rates, compared to just under $400,000 previously.

A high-income earner would get 28 percent more and a low-income earner 21 percent.

Jessica McLean, chief operating officer at PaySauce, said employers had been confused about how the change was happening.

“What we have seen is a huge influx of support volume over the last couple of days about things like ‘the new rate is applying already but it shouldn’t, it’s from the first of April’ but you’re paying it on the first of April so it applies, it doesn’t matter that you’re paying them for time in March it’s based on a payday…. Then they want to change the payday to March and we have to say no then your employees will end up with a tax bill because you’re going to ram another period into the financial year. They’re in a big flap about it.”

She said it was hard for employers who were paying total remuneration packages.

This means they set aside an amount to pay staff and both the employer and employee contribution comes from that.

“If the KiwiSaver rate goes up the money has got to come from somewhere. Either the employer’s got to cover it or it’s coming out of the employee’s net pay.”

She said some employers were willing to absorb the cost to ensure their employer did not have to cover the whole increase.

Some employers had also asked whether they could negotiate a temporary rate reduction on employee’s behalf, she said. “It’s got to be employee-led… but I think there’s this narrative that small employers are always trying to pay people the least they possible can and I don’t think that’s true. I think most of them are fine with the change.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

House prices might not rise this year after all, property data firm Cotality says.

It has released its latest data, which shows property values lifted 0.2 percent in March, after the same rise in February.

The median value in March was $802,599, 1.3 percent lower than a year earlier and just over 17 percent down on early 2022.

In the month, both Hamilton and Wellington were down 0.1 percent while Auckland and Tauranga were flat. Auckland’s affordability had improved in recent years as more supply had come on to the market, prices had dropped and incomes had increased.

Christchurch was up 0.6 percent and Dunedin 0.7 percent. Cotality said areas that were benefiting from a positive agricultural sector were seeing stronger growth.

Wellington remained one of the weaker parts of the country, with all of its regions down over the past 12 months and all still more than 20 percent below their peak.

Chief property economist Kelvin Davidson said two months of increases in a row could signal a change in direction for the housing market, but the Iran conflict threw a layer of uncertainty over everything.

He said he had been expecting prices to rise 5 percent this year but that was not as likely any more.

“The chances that things are even weaker get greater and greater the longer this goes on.

“At the moment you’d certainly have to be pegging that back a bit. I see some of the banks are now talking about possibly small falls in average house prices this year and that wouldn’t necessarily surprise me either … we had a relatively modest house price forecast up to 5 percent – you could easily imagine that being down at zero or even slightly negative. That’s despite the fact that mortgage rates are relatively low at the moment.”

He said the factor that was missing for house prices to turn around was confidence.

“There were signs that was starting to come through but now that’s hard to imagine. Your confidence would probably be going the other way, potentially the economy’s going the other way too and potentially mortgage rates are going up. All of those things that might have been falling into place for the housing market are now starting to go back in the other direction again.”

He said while some sellers might not be pleased, it was still good news for buyers provided they felt secure in their jobs.

“In a nutshell, both the economy and housing market still face a testing period ahead.”

Davidson said he did not expect “knee jerk” official cash rate rises but the Reserve Bank was on high alert.

“Global uncertainty stemming from the Iran conflict and concerns about wider inflationary pressure have already seen interest rates rise in world money markets, and that’s flowed through to mortgage rate lifts at some NZ banks.

“Many households will be watching that very closely and recent data shows there’s recently been a strong shift by borrowers towards fixing longer.

“That will give some sense of security to individuals, but for the wider housing market the risks of higher inflation, rising interest rates, and/or a softening economy both point to headwinds,” Davidson said.

“Indeed, our modelled forecast for property sales to rise from around 90,000 last year to 100,000 this year is starting to look a stretch. In the end, though, everything is a watching brief at the moment when it comes to the economy and housing market.”

He said households might not want to list their homes for sale in an uncertain environment.

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Source: Radio New Zealand

Employers might be being encouraged to let people work from home if they are struggling with fuel costs, but not everyone hopes they heed the message.

As fuel costs have risen in recent weeks, unions have called on organisations such as banks to be more flexible with staff wanting to skip the commute.

Retail NZ chief executive Carolyn Young said that should be done carefully.

“This is an economic issue, not a health issue. The work from home edict [during Covid] came about because there were concerns that ongoing engagement and connection with people could cause harm to people’s lives.

“We’re not in that situation, this is quite a different situation. The economic situation would be worse if people don’t come into towns and cities across the country. If people stop coming into town they stop buying. Eighty-five percent of sales are done in person, in store, people in town. They’re walking past shop windows, they’re seeing items they might need.”

The increased prevalence of working from home through Covid has been credited with changing the makeup of some central business districts around the country.

Young previously told RNZ that she worried that foot traffic levels might never return to where they were, for some businesses.

But Brad Olsen, chief executive at Infometrics, said consumer confidence more generally was likely to be more of a concern for retailers than whether people were working from home.

When people were at home, their spending tended to drift more to food-related items, he said. The pattern of spending could be affected, but the total amount would not be.

“I don’t think it’s a full and complete view that people only spend when they’re working in town and don’t spend otherwise.”

But he said the wider economic environment had more potential to dent total spending. “The wider impact of having to spend more on fuel, people are more worried about the economy, that will drive overall spending down. If we see spending activity drop it won’t be because people are working from home, it will be because people are paying more for fuel and worried about their financial lives.”

Westpac chief economist Kelly Eckhold said it would make it harder for CBD retail. “But past experience suggested that there were flows of business to suburban shops and cafes when WFH was more prominent. I would expect the same dynamics again.”

‘Big hit coming through on households’ disposable income’

BNZ chief economist Mike Jones said it would add to all the other headwinds on spending at the moment.

“Chief among them is the big hit coming through on households’ disposable income from the fuel cost spike. Cuts are being made to discretionary spending already. But there’s also a potentially weaker labour market and reduced job security to contend with, broader cost of living pressures, and reduced tourism spending. It’s shaping up as a big hit and consumers are feeling it, as we saw from last week’s slump in consumer confidence.”

But Young said going back to isolating at home would not be a solution to an economic crisis.

“That creates another beast in itself and it multiplies the impact of the inflationary measures if we get to a place where people stop coming into town and they stop buying a coffee and they stop going into the stores to buy things. More businesses will close, which creates greater, you know, demise for the New Zealand economy.”

She said she had seen some positive economic data in the early months of this year and had been hoping that 2026 would be a time of recovery.

“Then of course in March we’ve been hit by this and it feels like another blow and we just can’t seem to get a break.”

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Source: Radio New Zealand

Electric vehicle “fomo” (fear of missing out) has helped drive sales to their highest level in more than two years as the fuel crisis bites, an EV dealer says.

Waka Kotahi data shows monthly registrations of full battery EVs last month jumped nearly four-fold from recent levels, from an average of 800 a month in the last two years, to 3100.

Registrations of plug-in hybrid vehicles almost tripled, from a monthly average of 540 to nearly 1600 in March.

Tesla, Nissan, BYD and Dongfeng dominated the full EV category, accounting for 60 percent of new registrations.

The last time sales in either category were that high was just before the Clean Car Discount was axed at the start of 2024.

EV specialist dealership GVI had experienced a “frantic month”.

“Fomo is probably what we’ve seen,” owner Hayden Johnston said.

“It’s gone from, ‘I’ve been researching these models and I’d like to drive them, and what do you think of them?’ … to, ‘What EVs have you got? Ok, we’ll buy it.'”

The last week was especially busy, he said.

“Stock on the ground is just so limited. We’ve sold everything we had on the ground, we sold the boat [load] that arrived end of last week, and now we’re selling into stock that’s on its way, hasn’t even got to New Zealand yet.”

The complexities of shipping used EVs, which were considered a hazardous good, meant those cars would not even arrive in New Zealand until May or later, Johnston said.

“We’re limited to the carriers who will take used EVs, and at the moment there’s only one shipping company that will take them.”

Even then, it came down to the individual boat owner as to whether or not they would load used EVs.

“So, for example, our April sailing is a non-EV sailing.”

GVI had been specialising in electric vehicles for 12 years and had good sources of used EVs from Japan, but the sudden surge of interest meant other dealers were now also trying to source them, he said.

“Everyone else is playing in our sandpit, I guess, so that’s created a little bit of a problem.”

Salespeople were finding they had to “slow people down” in some cases, Johnston said.

“We don’t just let people drive out the gate in an EV, because we know from experience that an EV doesn’t work for everybody.”

However, he said many of the negative preconceptions about EVs were false.

“The biggest anti-EV propaganda lie out there is that the batteries will just die, or only last eight years.”

He had just traded in a 2013 Nissan Leaf that still had good range and would last another six or seven years, and newer cars had significantly better battery technology.

“Ten-year-old Teslas have still got a late-80s, 90 percent battery health.”

Even the replacement cost of a battery was similar to replacing the transmission of an internal combustion engine, he said.

“These vehicles will be part of our fleet for as long as any petrol and diesel vehicle.”

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Source: Radio New Zealand

A financial services dispute service says it has dealt with two cases recently in which large sums of money have gone missing when people tried to send them overseas.

In one case dealt with by Financial Services Complaints Ltd (FSCL), a man aged in his 90s tried to transfer US$12,000 via an international money transfer service to his son’s overseas bank account.

When the money did not arrive, the man realised he had entered the wrong routing number for the payment and had used the number for the money transfer service’s intermediary bank rather than his son’s bank.

The account number itself was correct.

The money transfer service asked for a “recipient bank statement” which could not be provided because the son had not received the money.

It was not until 10 working days after the man reported the error that the money transfer service attempted to recall the funds, FSCL said.

The service said that gave an opportunity for money sent to incorrect account details to bounce back and be returned without a recall being needed.

The overseas bank did not respond to the recall request.

The man’s son repeatedly tried to contact it but was told it could only provide information to the money transfer service.

When the service tried again to recall the money, the bank did not respond.

At that point, the man complained to FSCL, which reviewed the complaint and found the money service’s terms and conditions stated customers must provide correct payment details.

“If incorrect details are provided, the money transfer service is not responsible for money sent to the wrong recipient, and is only required to make reasonable efforts to recover the funds.”

FSCL agreed the service should have tried to recall the money earlier.

It said it could have been more helpful but it took reasonable steps to try to recover the money.

“The lack of response from the overseas recipient bank was not within their control.”

It said the service should pay the man $1000 for non-financial loss.

FSCL ombudsman Susan Taylor said she had another case in recent days in which a person was transferring money to a travel payment card and got the last two numbers the wrong way around.

That sent the money to another customer’s account.

“The other customer was based in Australia, and unfortunately he didn’t notice for two days that the money hadn’t appeared on his card account.

“By that time, by the time his own bank tried to recall the money, the person in Australia had withdrawn all the money and neither the bank nor the money transfer service were able to get it back.

“It was $100,000, so it was a huge loss. We just try to give the message all the time, it’s tragic when you see these cases, and it often is simple human error where even if you’re in a hurry, just slow down and check, double check, triple check that you’ve got all of those numbers right before you press the send button.”

She said in the first case, the money went to an American bank. “A person from New Zealand trying to deal with a massive overseas bank … who knows whether the money is sitting in an account there – the chance of the customer being able to get any traction with a large overseas bank is extremely low.”

Taylor said if people noticed something was wrong, they should get in touch with their bank or money transfer service as soon as possible. “There is a very limited window of time that the bank or money transfer service can act to recall the money. It’s important that you act really quickly.”

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Source: Radio New Zealand

The government is reallocating $122 million of existing spending on science, innovation and technology to focus more investment in emerging and advanced technologies, such as quantum technology, robotics and genomics.

Science Minister Shane Reti said the policy change would help New Zealand take the lead in niche areas where it could be as globally competitive as other small advanced economies, such as Singapore and Ireland.

“Now is the moment … to seed that thinking. To seed those new things,” Dr Reti said, speaking off the cuff to about 100 scientists, investors and innovators attending a Sprout Agritech summit in Auckland.

“Because otherwise what will happen, amongst other things, officials will lock in things … things really hard to undo.

“Fly, be bold. I’m giving you a simplified structure to do exactly that.

“Also remember. We can’t do everything.”

For example, he said New Zealand could not be brilliant at all aspects of quantum technology, which covered a broad range of applications, such as computing and communications, but could build on its leadership in photonics.

He said the policy shift would also be “regulatory light”, with details to be released over the course of the year.

“You can be out there and go right to the edge, right to the envelope, and using emerging technologies.”

The shift would see funding going to sectors which had not received funding in the past, including defence and space, while others would get more funding, such as infrastrucuture and industrial production.

There would be a reweighting in funding allocations, to put more more money into mission-led work (60 percent rather than 45 percent) and less into investigator-led work (40 percent rather than 55 percent).

The $122m of funding (about 15 percent of the total $839m available) would be allocated to support the four thematic pillars as follows:

• Primary industry and bioeconomy
• Technology for prosperity
• Environmental sustainability
• Healthy people and a thriving society

Reti said the type of innovation that falls under the four pillars was the use of robotics in the agri-tech sector.

“The example of robotic automation was a kiwifruit grower in Kerikeri who’s using drone technology to image his kiwifruit and make decisions about it. That’s cool. That will give us a competitive advantage,” he said.

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Source: Radio New Zealand

Users of car sharing service Mevo are gutted the company has gone into voluntary administration, saying it is a cost-effective and climate-conscious choice that has served them well for years.

The Wellington-based company had cars in the capital as well as Auckland, Hamilton and Nelson.

Users reserve a car through an app, unlock it and drive, paying a flat rate for however long they use it and returning it to a choice of dedicated Mevo parks.

Mevo went into voluntary administration on Monday, and regular customers are hoping it will come out the other side.

Peter Graczer lives in Mount Cook, just outside Wellington’s city centre, and said Mevo prevented him from needing his own car.

“We used to have a car, but Mevo turned out to be more economical because we only had that once every week or so use case,” he said.

“It made living without a car actually realistic.”

The service was perfect for weekend trips to pick up bulky items from hardware shops, a trip to the tip and the weekly groceries, said Graczer.

“It’s those occasional errands that it was really perfect for where public transport and Uber just don’t work.”

It was a shame that the company could be going out of business, and he was forced to consider buying a car, he said.

“I just don’t see an alternative which is as flexible and as convenient as Mevo has been for the last few years.”

Wellingtonian Denise Garland had been using Mevo to get to work for years, because her shifts started early, before buses were running.

“It was a really amazing option being able to just pick up a car from down the road and then drop it off outside my workplace,” she said.

She also used it for big supermarket shops, and road trips.

“Just pick up a Mevo, drive it to Castlepoint or even to Hawke’s Bay, have it as a runabout for a couple of days and then return home, park it outside the house and end the trip. Super simple.”

For Garland, it was a climate-conscious choice: much of Mevo’s fleet was electric.

“I made a conscious decision not to buy another petrol vehicle ever again, and electric vehicles are very expensive, so it was much more cost-effective and also very convenient to just be able to pick up Mevos from around the city or outside my house in Miramar and use those.”

She would really miss the service if it closed, and it would make life that little bit more difficult, she said.

Samantha Richards has her own car, but for a quick whip into town or the airport Mevo worked out cheaper – because it has free dedicated car parks.

The prospect of Mevo’s closure was “tragic”, she said.

“It was a great model … I wish we had cars parked on every street that we could all share instead of everybody owning a car or two cars per family.

“I think it’s the future of car use, is to have some system like that.”

For that reason, Richards wanted to support Mevo and had been using it as much as she could, as well as spreading the word to family and friends in an attempt to support the company’s concept.

Mevo could continue under new ownership – administrator

Mevo co-founder Erik Zydervelt referred RNZ’s request for comment to the voluntary administrators appointed on Monday: BDO Wellington’s Jessica Kellow and Iain Shephard.

Kellow said Mevo still had a future.

The 10-year-old company had recorded profits as recently as the last few quarters of last year, but struggled recently to make enough with its expensive fleet, she said.

It was starting to move away from Teslas and BYDs to the likes of Suzuki Swifts.

“The modelling did show that this would be a clear pathway to a turnaround, if you like, but they just essentially have run out of runway.”

The company was also considering adding another option to its offering – having private car owners leasing cars to Mevo, to on-rent.

An investor was set to give Mevo $1.7 million which would have seen it through, but Kellow said they pulled out because Mevo breached some conditions.

She would not give any further detail.

Voluntary administration gives the company breathing space to figure out its next move – investment or sale. Kellow said the latter was more likely.

“We are working with parties that have expressed an interest in completing some due diligence on the business, and we’re hopeful that might lead to a transition of … the business to a new entity or investment into that current platform.”

That would need to be completed within 30 days of the company being placed into administration, which happened on 30 March.

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Source: Radio New Zealand

Greenpeace Aotearoa has won a lawsuit against dairy giant Fonterra’s brands business for misleading butter packaging it labelled “greenwashing”.

The activist group filed the lawsuit in September 2024 for logos featured on Fonterra Brands’ Anchor butter sold between December 2023 and April 2025 that said “100-percent New Zealand grass fed”.

But it argued the co-operative’s dairy cows were also fed imported supplementary feed like palm kernel expeller (PKE), produced in countries like Indonesia.

The use of the two phrases “100 percent New Zealand” and “grass-fed” in combination were found to be misleading and breached the Fair Trading Act 1986.

Fonterra will discontinue using the logo on its Anchor butter packaging, however the co-operative has sold its consumer brands business Mainland Group, that Anchor sits under, to French dairy giant Lactalis.

Greenpeace spokesperson Sinéad Deighton-O’Flynn said it was a win against corporate greenwashing.

“This admission from the world’s biggest dairy exporter is a win against corporate greenwash,” she said.

“It exposes the cynicism of Fonterra and its intensive dairy model: instead of ending its links to rainforest destruction, Fonterra just slapped a misleading label on its packaging and continued business as usual.”

She said New Zealanders were getting ripped off during a cost-of-living crisis.

“We’ve been paying at times upwards of $20 a kilo for butter, while also being misled about the quality of that butter.”

But a spokesman for Fonterra said it stood by its grass-fed claims.

“However, [Fonterra] recognises that the combined use of the two phrases would have been likely to mislead some consumers and has accepted this in the settlement with Greenpeace, the details of which are confidential.”

He said the co-op’s cows were 96 percent grass-fed, including grass, grass silage, hay and forage crops like legumes and brassicas.

The two parties settled outside court on Wednesday.

Greenpeace was a staunch opponent to the use of imported feed products due to its links to deforestation, such as in Southeast Asian rainforests.

“Most New Zealanders would be horrified to know that rainforests are being destroyed, with precious wildlife pushed to the brink of extinction, to grow cheap feed for Fonterra’s oversized dairy herd. And that’s likely why Fonterra tried to hide the truth.”

Deighton-O’Flynn said PKE was a dry, gravelly feed that originated from destroyed rainforests.

“The reality is Fonterra has only changed the label. It hasn’t changed its destructive practices. Instead of greenwash tactics, Fonterra should take action to phase out palm kernel on all of its farms.”

New Zealand imported around 2 million tonnes of PKE each year largely for the dairy industry.

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